Downpayment question for a mortgage

Downpayment question for a mortgage

I am looking to build a house next spring. I need to get a pre approval for 325k and my income is 84k on my own.My credit scores from my fico are EX 690, EF 660, TU 632My husband is not going to be on the loan as he has a foreclosure and some judgements from a prior marriage.I understand that I can use his stock as a downpayment if he gifts it to me.My question is the value of the stock is 45k, if I use the funds from my gift as a downpayment do I have to have a portion of my downpayment coming from my own income source?Secondly, do I have to sell the stock and have the funds in my bank account before I can qualify for a pre-approval or will the statement from stock be sufficient?

Re: Downpayment question for a mortgage

LB2484 wrote:I am looking to build a house next spring. I need to get a pre approval for 325k and my income is 84k on my own.My credit scores from my fico are EX 690, EF 660, TU 632 might not be good enough for construction loan. maybe with enough equity pledged.My husband is not going to be on the loan as he has a foreclosure and some judgements from a prior marriage. I understand that I can use his stock as a downpayment if he gifts it to me. a smal % can be used unless cashed outMy question is the value of the stock is 45k, if I use the funds from my gift as a downpayment do I have to have a portion of my downpayment coming from my own income source?Secondly, do I have to sell the stock and have the funds in my bank account before I can qualify for a pre-approval or will the statement from stock be sufficient? that value will be seriously discounted unless cashed out and in the bank... then we will still look to discount for taxes on the cash out.

Re: Downpayment question for a mortgage

Thanks for the response.The builder will be carrying the construction loan. They just need a pre approval in the amount of 325k. Are my credit scores good enough at this point or do I need to improve?The 45k is the payout.....we can show where that amount has been paid to us in the past two years as well as that we will have this payout in the next coming years. The stock is thru my husbands employer.Just to confirm...I will need to have it cashed out and in my bank account for it to be considered for my down payment?In order to qualify for a mortgage do I need to have a portion of the down payment showing that it came from my savings or payroll?Sorry for all the questions just trying to get the facts.

Re: Downpayment question for a mortgage

LB2484 wrote:Thanks for the response.The builder will be carrying the construction loan. then you need a purchase loan. so those scores are fine. They just need a pre approval in the amount of 325k. Are my credit scores good enough at this point or do I need to improve? good enoughThe 45k is the payout.....we can show where that amount has been paid to us in the past two years as well as that we will have this payout in the next coming years. The stock is thru my husbands employer. make sure to consider taxes on the distribution..... lender will reduce the amount for taxes if you havent alreadyJust to confirm...I will need to have it cashed out and in my bank account for it to be considered for my down payment? i wouldIn order to qualify for a mortgage do I need to have a portion of the down payment showing that it came from my savings or payroll?Sorry for all the questions just trying to get the facts.

Re: Downpayment question for a mortgage

I am building a new home and construction will be done mid December. I am selling 50K of my stocks " Not from employer" for my down. I have told my LO I would not be selling them until I have passed though UW. There is no point for me to sell get denied for some reason then have to pay capital gains tax and then reinvest the market again.

He complety understands plus it will only take five days for the money to be in my account. Hopefully this will not become an issue for me as well. If I have to sell then so be it.

Re: Downpayment question for a mortgage

I hope it isn't a problem once you start UW process. Please let me know and I hope it all turns out good. Sounds like your LO didn't have a problem giving you a pre approval with the stock not being sold?

Re: Downpayment question for a mortgage

LB2484 wrote:I hope it isn't a problem once you start UW process. Please let me know and I hope it all turns out good. Sounds like your LO didn't have a problem giving you a pre approval with the stock not being sold?

obviously the market could tank and your money could be in a risky stock.... that is a chance you take, but you done have to have them sold to get pre-approved.

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation.
Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies.
Many factors affect your FICO Scores and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating.
FTC's website on credit.

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.